India Faces Wider Coal Shortages, Worsening Power Outage

India is expected to face a wider coal shortage during the quarter ending September over expectations of higher power demand.

Reuters reports that the country expects local coal supply to fall 42.5 million tons short of demand in the September quarter, 15% higher than previously projected, due to higher growth in power demand and lower output from some mines.

It added on Saturday that India has stepped up pressure on utilities to increase imports in recent days, warning of cuts to supply of domestically mined coal if power plants do not build up coal inventories through imports.

India expects domestic coal supply of 154.7 million tons, 42.5 million tons short of the projected requirement of 197.3 million tons in the September quarter, the reports showed.

India now expects the demand for coal from utilities to be 784.6 million tons for the year ending March 2023, 3.3% higher than projected earlier.

The projected annual coal shortage is now 49.3 million tons, nearly three times the 17.7 million tons projected earlier.

Many states called for the federal government-run Coal India to import coal in bulk and distribute it among the states.